The National Bank for Agriculture & Rural Development (Nabard) has sanctioned a credit limit of Rs 390.45 crore to the Gujarat State Cooperative Bank Ltd (GSCB) on behalf of seven district central cooperative banks (DCCBs) namely Amreli, Rajkot, Kutch, Jamnagar, Surendranagar, Bhavnagar and Banaskantha.
A Nabard statement said that the limit is intended to enable conversion of short-term loans taken by farmers into medium term loans repayable over five years.
This medium-term (conversion) credit sanctioned by the apex development bank is expected to result in base level benefit through conversion of short-term crop loan dues of farmers amounting to Rs 488.81 crore into medium-term loans.
According to Nabard, the farmers would not only be relieved on the repayment of their crop loan but would also become eligible to draw further crop loans for the current year from the DCCBs.
Nabard chief general manager Sukhbir Singh, while announcing the above decision at the GSCB board meeting here today, said that these relief measures taken by Nabard would go a long way in mitigating the sufferings of farmers in Gujarat reeling under the adverse effects of drought for the past two years.
